Surplus Labour - Surplus Labour and Unequal Exchange

Surplus Labour and Unequal Exchange

Marx acknowledged that surplus labour may not just be appropriated directly in production by the owners of the enterprise, but also in trade. This phenomenon is nowadays called unequal exchange. Thus, he commented that:

"From the possibility that profit may be less than surplus value, hence that capital exchange profitably without realizing itself in the strict sense, it follows that not only individual capitalists, but also nations may continually exchange with one another, may even continually repeat the exchange on an ever-expanding scale, without for that reason necessarily gaining in equal degrees. One of the nations may continually appropriate for itself a part of the surplus labour of the other, giving back nothing for it in the exchange, except that the measure here not as in the exchange between capitalist and worker."

In this case, more work effectively exchanges for less work, and a greater value exchanges for a lesser value, because some possess a stronger market position, and others a weaker one. For the most part, Marx assumed equal exchange in Das Kapital, i.e. that supply and demand would balance; his argument was that even if, ideally speaking, no unequal exchange occurred in trade, and market equality existed, exploitation could nevertheless occur within capitalist relations of production, since the value of the product produced by labour power exceeded the value of labour power itself. Marx never completed his analysis of the world market however.

In the real world, Marxian economists like Samir Amin argue, unequal exchange occurs all the time, implying transfers of value from one place to another, through the trading process. Thus, the more trade becomes "globalised", the greater the intermediation between producers and consumers; consequently, the intermediaries appropriate a growing fraction of the final value of the products, while the direct producers obtain only a small fraction of that final value.

The most important unequal exchange in the world economy nowadays concerns the exchange between agricultural goods and industrial goods, i.e. the terms of trade favour industrial goods against agricultural goods. Often, as Raul Prebisch already noted, this has meant that more and more agricultural output must be produced and sold, to buy a given amount of industrial goods. This issue has become the subject of heated controversy at recent WTO meetings.

The practice of unequal or unfair exchange does not presuppose the capitalist mode of production, nor even the existence of money. It only presupposes that goods and services of unequal value are traded, something which has been possible throughout the whole history of human trading practices.

Read more about this topic:  Surplus Labour

Famous quotes containing the words surplus, labour, unequal and/or exchange:

    The Indian is one of Nature’s gentlemen—he never says or does a rude or vulgar thing. The vicious, uneducated barbarians, who form the surplus of overpopulous European countries, are far behind the wild man in delicacy of feeling or natural courtesy.
    Susanna Moodie (1803–1885)

    We have much studied and much perfected, of late, the great civilized invention of the division of labour; only we give it a false name. It is not, truly speaking, the labour that is divided; but the men.
    John Ruskin (1819–1900)

    A distinction of property results from that very protection which a free Government gives to unequal faculties of acquiring it.
    James Madison (1751–1836)

    My life is superficial, takes no root in the deep world; I ask, When shall I die, and be relieved of the responsibility of seeing a Universe which I do not use? I wish to exchange this flash-of-lightning faith for continuous daylight, this fever-glow for a benign climate.
    Ralph Waldo Emerson (1803–1882)